FINRA Series 6 – Investment Company and Variable Contracts Products Representative Practice Exam

FINRA Series 6 – Investment Company and Variable Contracts Products Representative Practice Exam

The Series 6 Investment Company and Variable Contracts Products Representative Qualification Examination (IR) evaluates the competence of entry-level representatives in fulfilling their duties as investment company and variable contracts products representatives.

This examination checks each candidate's proficiency in performing essential functions associated with being an investment company and variable contract products representative, encompassing the sales of mutual funds and variable annuities.

Who should take the exam?

To obtain registration for Investment Company and Variable Contracts Products, candidates are required to pass both the Securities Industry Essentials (SIE) exam and the Series 6 exam.

Eligibility requirements state that candidates must be associated with and sponsored by a FINRA member firm or another relevant self-regulatory organization (SRO) member firm. 

The SIE exam is a prerequisite for the Series 6 exam. Candidates must successfully pass both exams to secure the Investment Company and Variable Contracts Products registration.

Exam Learning Areas:

Upon passing the Series 6 exam, candidates are qualified to solicit, purchase, and/or sell various securities products, including:

• Mutual funds (closed-end funds solely on the initial offering)
  
• Variable annuities
• Variable life insurance
• Unit investment trusts (UITs)
• Municipal fund securities (e.g., 529 savings plans, local government investment pools [LGIPs])

Exam Details

• Exam Name: Series 6 – Investment Company and Variable Contracts Products Representative 
• Exam Languages: English
• Exam Questions: 50 Questions
• Time: 1 hour 30 minutes
• Passing Score: 70

Course Outline 

The Exam covers the given topics  - 

Function 1: Understand how to Seeks Business for the Broker-Dealer from Customers and Potential Customers

1.1 Contacts current and potential customers in person and by telephone, mail and electronic means; develops promotional and advertising materials and seeks appropriate approvals to distribute marketing materials

1.2 Describes investment products and services to current and potential customers with the intent of soliciting business

Function 2: Learn how to Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives

2.1 Informs customers of the types of accounts and provides disclosures regarding various account types and restrictions

2.2 Obtains and updates customer information and documentation, including required legal documents, and identifies and escalates suspicious activity 

2.3 Makes reasonable efforts to obtain customer investment profile information including, but not limited to, the customer's other security holdings, financial situation and needs, tax status and investment objectives

2.4 Obtains supervisory approvals required to open accounts

Function 3: Understand about providing Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records

3.1 Provides customers with information about investment strategies, risks and rewards, and communicates relevant market, investment and research data to customers 

3.2 Reviews and analyzes customers' investment profiles and product options to determine that investment recommendations meet applicable standards

3.3 Provides required disclosures regarding investment products and their characteristics, risks, services and expenses 

3.4 Communicates with customers about account information, processes requests and retains documentation 

Function 4: Learn how to Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions

4.1 Provides current quotes 

4.2 Processes and confirms customers’ transactions pursuant to regulatory requirements and informs customers of delivery obligations and settlement procedures 

4.3 Informs the appropriate supervisor and assists in the resolution of discrepancies, disputes, errors and complaints